North Carolina Down Payment Support Systems

Payments Gateway - The North Carolina Housing Finance Agency got two amazing plans for First Time Home Buyers. These programs will be the Mortgage Credit Certificate along with the Down Payment Assistance Program.

You also buy a home between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of those plans, you can even be eligible for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who has not owned a house in the prior three years. Here is exactly the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and average incomes. An MCC “reduces your tax liability based on a percentage of the mortgage interest that you pay.

You are able to claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes, if you are eligible for the MCC. It's possible for you to save around $2,000 on your taxes.

If you do qualify for the MCC you'll manage to combine this. This may reduce a buyer's tax liability by $10,000.

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any other individual expected to reside in the residence who is 18 years of age or older.”

The income and house price limits that apply in Orange, Durham and Chatham Counties are listed below.

MCC Income Limits 1 Man $61,500 2 Individuals $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Cost Limits New House $220,000 Existing Home $210,000

Home buyers that need help with their deposit and closing costs may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer only has to pay $1,000 of their own funds and the load would pay around .

This plan has more rigorous income limitations than the MCC program outlined above. Like the MCC application, it can be used along with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit help, nevertheless, can't be employed in conjunction together with the MCC. This really is an either or situation.

House price limitations Durham and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Individuals $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Support Sales Cost Limits New Dwelling $210,000 Existing Residence $210,000